Ensuring Accuracy in Personnel Cost Declaration for Horizon 2020 Grants

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Learn how to avoid errors in declaring personnel costs in Horizon 2020 grants to prevent negative consequences such as financial scrutiny, recoveries, and increased error rates. Understand common errors, consequences, audit elements, and ensure accurate personnel costs and time recording for successful grant management.

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Avoiding errors in declaring personnel costs in Horizon 2020 grants Brussels, 16 February 2022 #HorizonEU DG Research and Innovation - Common Audit Service Sorin Serban

Errors. Why do they occur? Misunderstandings of the rules; Lack of attention to the detail of the provisions of the grant agreements. Intentionality

The consequences of errors: Beneficiaries European Commission Non-optimal use of funding available Scrutiny of the Budgetary Authority and ECA Recoveries Increased error rate Increased ex post audit efforts Corrective measures

The error rate Population Sample neg_adj Error Rate % = aud_amount

H2020 Audit Assuranceelements Assessing Legality Regularity of H2020 project payments Residual error rate acceptable level General control objective: To get a residual error rate as close as possible to 2%, without necessarily expecting it to get under 2%. 5 Disclaimer: Information not legally binding

Audit in H2020 Main detected errors Personnel costs due to: Incorrect productive hours calculation Incorrect remuneration costs - e.g. estimated Incorrect time working on action claimed Other - e.g. unreliable/missing timesheets 6 Disclaimer: Information not legally binding

Make sure that your Personnel cost is correct ????? ????????? ????? (?? + ??? + ??? ???) ????? ?????????? ????? ??????? 1,2,3 x x Hours Worked Hours Worked Personnel costs Hourly rate = Productive hours 7 Disclaimer: Information not legally binding

Make sure that your Time Recording is: Consistent with HR records; Properly dated and signed; Not in excess of your full time employment; Sufficient in terms of information. 8 Disclaimer: Information not legally binding

Make sure that the numerator is correct Eligible personnel costs Personnel costs Hourly rate = Productive hours Include: Salaries Social security contributions (employers' and employees') Taxes and other costs included in the remuneration if they arise from national law or the employment contract Do not include: Any ineligible item (article 6.5) Any costs included in other budget categories (e.g. indirect costs) 9 Disclaimer: Information not legally binding

Make sure that the denominator is correct Personnel costs Hourly rate = Productive hours Annual productive hours 1720 hours Advice you must use this option if the employment contract does not specify the working time conditions or if the "annual workable hours" cannot be determined ! Individual annual productive hours Formula: annual workable hours + overtime - absences Standard annual productive hours According to the beneficiary's usual accounting practices. Minimum threshold: annual productive hours 90 % of the standard annual workable hours 10 Disclaimer: Information not legally binding

Avoid errors by making sure that: Your time charged to the project is correct; Time records meet the GA s conditions; Remuneration in the numerator is correct; Productive hours in the denominator are correct. 11 Disclaimer: Information not legally binding

Avoid errors by making sure that: Personnel cost formula reconciles; Transaction listing reconciles; Employment Contracts are in place; Exchange rate: please ensure you used the exchange rate stipulated by the H2020 GA Final test is performed before you press the button 12 Disclaimer: Information not legally binding

ADDITIONAL INFO: I want to read Horizon 2020 Indicative Audit Programme https://ec.europa.eu/research/participants/data/ref/h2020/other/gm/audit/h2020-iap_en.pdf Horizon 2020 On-line Manual Audit and certifications https://ec.europa.eu/research/participants/docs/h2020-funding-guide/grants/grant-management/checks- audits-reviews-investigations_en.htm I read, but it is still not clear National Contact Points https://ec.europa.eu/info/funding- Research Enquiry Service http://ec.europa.eu/research/enquiries tenders/opportunities/portal/screen/support/ncp